Investing.com -- Federal Reserve Bank of Cleveland President Beth Hammack said Friday that the period of ultra-low interest rates from 2008 to 2020 may have been abnormal rather than the current environment.

Speaking on Bloomberg television, Hammack addressed concerns about borrowing costs. "I think when we go back and look at the history, I think what we'll see is that period from 2008 to 2020 was the abnormal part, not this period where we are today," she said.

The Fed official stated that inflation will end the year around 3%, missing the central bank's target. She called for the Fed to act with rate hikes, warning that waiting will create pain.

Hammack said she does not see restrictive financial conditions in the economy. "There is not much restriction in the economy right now," she stated.

The Cleveland Fed president said Fed credibility depends on delivering on its dual mandate. She noted that communicating Fed issues to the public is part of the job and that interest rates are the Fed's most easily understood tool.

Hammack added that markets complement the Fed but are not a substitute for it. She said she goes into all Fed meetings with an open mind.